Morning Brief
JCI finished lower yesterday amid further net foreign buy. The drop was beset by
the sluggish financial sector. Top Losers: Mining (-1.80%), Property (-1.33%),
Finance (-0.98%)
The U.S. bourses fell yesterday due to the possibility of murky outlook of 2019’s company earnings. Investors were beset by the U.S. plan to impose another new tariffs on China’s products. European bourses snapped higher, led by the automotive and banking sectors, while Asia bourses closed mixed yesterday.
Today’s Outlook: The U.S. Imposes Import Tariffs
We estimate that today JCI is likely to move at sluggish pace with the support
range of 5703-5709 and resistance range of 5787-5800. The U.S. tit-for-tat
tariffs on China’s product sparked by the possible failure of talks between Xi Jinping and Trump constitutes as global volatility. The tariffs taking effect on the early of December are imposed on products worth USD257 billion.
From the domestic outlook, foreign investors posted net buy. 3Q18’s earnings draw foreign investors’ interest to perform net buy. Indeed, foreign investors keep their eyes on inflation data.
Stocks Recommendation
(details on the next page)
Trading Buy: PGAS, EXCL, AALI
Company News
WTON : Enjoys Double-Digit Growth in Revenues and Net Profits
Stocks Recommendation
PGAS Last = 2170
Analysis We project that in 3Q18 PGAS is likely to post
the net profit of USD107 million, the highest figure since 4Q18.
Range 2130 – 2240
Action Trading Buy. Cut Loss If Below 2130
EXCL Last = 2680
Analysis We estimate that in 3Q18 EXCL is unlikely to
suffer from the loss of IDR97 billion in 2Q18. In contrast, it is likely to post the net profit of IDR63 billion in 3Q18 on the back of the increment in the number of its customers.
Range 2650 – 2810
Action Trading Buy. Cut Loss If Below 2650
AALI Last = 11575
Analysis After hitting hardest at 4-streak day, the
global CPO prices finally rebounded by 1.82%. The rebound was on the back of unfavorable weather hitting Malaysia, potential for reducing supply.
Range 11400 – 12000
Action Trading buy. Cut Loss If Below 11400
Source: Bloomberg Source: Bloomberg
Source: Bloomberg
Sector Rotation
Source: Bloomberg
Company News
Domestic & Global News
The Government Has Yet to Mention Pre-Funding Opt
Unlike the prior years, the Indonesia government has not yet to decide whether or not to opt pre-funding with a view to
funding early-year demand. However, the prefunding is still a current option taken by the government. The Director of
State Bonds Director General PPR Loto Srinaita Ginting did not mention whether or not the pre-funding option in form of
global bond issuance or private placement will be performed. (Kontan)
U.S. Reportedly Planning Tariffs on Remaining USD257 Billion in Chinese Goods
The United States is preparing new tariffs against all remaining Chinese imports if trade talks between Presidents Donald Trump and Xi Jinping fail to reconcile the ongoing trade dispute, according to Bloomberg News. An announcement of new taxes against goods from China could occur as early as December and target the rest of the imports from the Asian nation that are not already subject to tariffs. The total would amount to about $257 billion worth, according to the Bloomberg report. (CNBC)
WTON : Enjoys Double-Digit Growth in Revenues and
Net Profits
WTON enjoyed double-digit growth in 3Q18’s revenues
and net profit. Its revenue grew by 19.9% y-y to IDR4.10
trillion and its net profit grew by 26.9% y-y to IDR220.48
billion. On expenses side, its COGS increased by 19.0% y-y,
its business expenses rose by 31.8% y-y in 3Q18. (Bisnis
Indonesia)
ADHI : Is Backed by Construction Segment
ADHI in 3Q18 marked the surge of 8.2% y-y to IDR9.43
trillion and 63.6% y-y to IDR335.53 billion in revenue and
net profit, respectively. It disclosed that the surge was on the back of the construction segment's top performance,
particularly toll-road projects. Now, it is undergoing
projects bidding such as construction of dams, roads, bridges, etc. (Bisnis Indonesia)
SCMA : Buy Back Fund Derives from Interest Revenue
SCMA stated that the fund allocated for buy back will be derived from its interest revenues. Of note, its spent the fund amounting to IDR3 trillion for buy back. Indeed, it will hold EGM to seek approval from the stockholders for adding value and returning excessive cash flow to the stockholders. (Kontan)
UNTR : Enjoys Growth of 32.1% in Revenues
IN 3Q18, UNTR posted the growth of 32.1% to IDR61.12 trillion in revenues thanks to the service segment posting revenue of IDR33.4 trillion and the product sales segment posting revenue of IDR27.72 trillion. Its net profit buoyed
to IDR9.07 trillion (+60.4% y-y). In 4Q18, it expects a
Global Economic Calendar
Date Country Hour
Jakarta Event Period Actual Consensus Previous
Monday USA 19:30 Personal Income Sep 0.20% 0.40% 0.30%
29 - Oct USA 19:30 Personal Spending Sep 0.40% 0.40% 0.30%
Tuesday JPN 06:30 Jobless Rate Sep 2.30% 2.40% 2.40%
30 - Oct GER 15:55 Unemployment Change (000's) Oct -13k -23k
EU 17:00 GDP SA QoQ 3Q A 0.40% 0.40%
EU 17:00 GDP SA YoY 3Q A 1.80% 2.10%
EU 17:00 Consumer Confidence Oct F -2.7 -2.7
GER 20:00 CPI MoM Oct P 0.10% 0.40%
GER 20:00 CPI YoY Oct P 2.40% 2.30%
Wednesday JPN 06:50 Industrial Production MoM Sep P -0.30% 0.20%
31 - Oct CHN 08:00 Manufacturing PMI Oct 50.6 50.8
USA 19:15 ADP Employment Change Oct 190k 230k
Thursday JPN 07:30 Nikkei Japan PMI Mfg Oct F -- 53.1
01 - Nov CHN 08:45 Caixin China PMI Mfg Oct 50 50
UK 16:30 Markit UK PMI Manufacturing SA Oct 53 53.8
UK 19:00 Bank of England Bank Rate 1-Nov 0.75% 0.75%
USA 19:30 Initial Jobless Claims 27-Oct -- 215k
USA 21:00 ISM Manufacturing Oct 59.4 59.8
Friday GER 15:55 Markit Germany Manufacturing PMI Oct F -- 52.3
02 - Nov EU 16:00 Markit Eurozone Manufacturing PMI Oct F -- 52.1
USA 19:30 Change in Nonfarm Payrolls Oct 190k 134k
USA 19:30 Unemployment Rate Oct 3.70% 3.70%
USA 19:30 Underemployment Rate Oct -- 7.50%
USA 21:00 Factory Orders Sep 0.30% 2.30%
USA 21:00 Durable Goods Orders Sep F -- 0.80%
Source: Bloomberg
Source: Bloomberg
Domestic Economic Calendar
Date Hour
Jakarta Event Period Actual Consensus Prev.
Wednesday Tentative Money Supply M2 YoY Sep -- 5.90%
31 - Oct Tentative Money Supply M1 YoY Sep -- 8.60%
Thursday 07:30 Nikkei Indonesia PMI Mfg Oct -- 50.7
01 - Nov 11:00 CPI YoY Oct -- 2.88%
11:00 CPI NSA MoM Oct -- -0.18%
11:00 CPI Core YoY Oct -- 2.82%
Corporate Calendar
Date Event Company
Monday Extraordinary Shareholder Meeting BBKP, MKNT
29 - Oct IPO Listing Date YELO
Tuesday Extraordinary Shareholder Meeting ABDA
30 - Oct Cum Dividend Date ITMG (IDR1,420 per share)
Wednesday Annual Shareholder Meeting CMNP
31 - Oct IPO Listing Date CAKK
DISCLAIMER
This report and any electronic access hereto are restricted and intended only for the clients and related entities of PT NH Korindo Sekuritas Indonesia. This report is only for information and recipient use. It is not reproduced, copied, or made available for others. Under no circumstances is it considered as a selling offer or solicitation of securities buying. Any recommendation contained herein may not suitable for all investors. Although the information hereof is obtained from reliable sources, its accuracy and completeness cannot be guaranteed. PT NH Korindo Sekuritas Indonesia, its affiliated companies, employees, and agents are held harmless form any responsibility and liability for claims, proceedings, action, losses, expenses, damages, or costs filed against or suffered by any person as a result of acting pursuant to the contents hereof. Neither is PT NH Korindo Sekuritas Indonesia, its affiliated companies, employees, nor agents are liable for errors, omissions, misstatements, negligence, inaccuracy contained herein.
All rights reserved by PT NH Korindo Sekuritas Indonesia
PT. NH Korindo Sekuritas Indonesia
Member of Indonesia Stock Exchange
Head Office :
Wisma Korindo 7th Floor
Jl. M.T. Haryono Kav. 62 Pancoran, Jakarta 12780 Indonesia
Telp: +62 21 7976202 Fax : +62 21 7976206
Branch Office BSD: ITC BSD Blok R No.48 Jl. Pahlawan Seribu Serpong Tangerang Selatan 15322 Indonesia
Telp : +62 21 5316 2049 Fax : +62 21 5316 1687
A Member of NH Investment & Securities Global Network
Seoul | New York | Hong Kong | Singapore | Shanghai | Beijing | Hanoi |
Jakarta
Branch Office Solo : Jl. Ronggowarsito No. 8 Kota Surakarta
Jawa Tengah 57111 Indonesia
Telp: +62 271 664763 Fax : +62 271 661623
